Ahead of the Goods and Services Tax (GST) Council meeting on July 11, the Fitment Committee of the Council has recommended removing the tax on the cancer drug Dinutuximab, reducing the rate to 5% from 18% on kachri papad and steel slag, sources said.
Currently, pre-packed and labelled papad attract 5% GST. However, kachri and kachari papads were attracting 18% GST. It has been recommended to reduce GST from 18% to 5% on kachari and kachari papad which are not fried and made by extraction process. The proposed change would bring parity with other papads.
Following the Indian Steel Association (ISA)’s representation, the Fitment Committee has also recommended reducing the tax rate on LD slag (steel slag) to 5% from 18% to reduce supply chain interruptions and prevent tax evasion.
LD slag is being tested as an alternative for use in fields such as cement production, highways, marine ecology and soil conditioners. According to ISA, the high GST rate on LD slag at 18% is discouraging its broad usage.
Fitment panel has also recommended removing the 12% GST on Dinutuximab, an expensive cancer drug to give relief to patients. In March, the government exempted the GST for a cancer patient on an urgent appeal as the tax amount on the drug doses came to about Rs 7 lakh.